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Accountancy · 2025 · 4 marks
CBSE 2025 · Region 7 · Set 3 · Q21
Pass necessary journal entries for the issue of debentures in the books of ZX Ltd. for the following transactions: (i) Issued 4,000, 8% Debentures of…
Pass necessary journal entries for the issue of debentures in the books of ZX Ltd. for the following transactions : (i) Issued $\displaystyle 4,000$, $\displaystyle 8$% Debentures of $\displaystyle 100$ each at a discount of $\displaystyle 10$% redeemable at par after $\displaystyle 5$ years. (ii) Issued $\displaystyle 1,000$, $\displaystyle 8$% Debentures of T $\displaystyle 100$ each at a premium of $\displaystyle 10$%, redeemable at premium of $\displaystyle 5$% after $\displaystyle 5$ years.
Marking-scheme solution
In the books of ZX Ltd.
Journal
Date Particulars L.F Dr. Cr.
Amount Amount
(₹) (₹)
(i)Bank A/c Dr. $\displaystyle 3,60,000$
To Debenture Application &Allotment A/c $\displaystyle 3,60,000$
(Application money received on $\displaystyle 4,000$ ,$\displaystyle 8$% Debentures)
Debenture Application &Allotment A/c Dr. $\displaystyle 3,60,000$
Discount on issue of Debentures A/c Dr. $\displaystyle 40,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 4,00,000$
(Debentures issued at a discount of $\displaystyle 10$%, redeemable at
par.)
(ii)
Bank A/c Dr. $\displaystyle 1,10,000$
To Debenture Application &Allotment A/c $\displaystyle 1,10,000$
(Application money received on $\displaystyle 1000$ ,$\displaystyle 8$% Debentures)
Debenture Application &Allotment A/c Dr. $\displaystyle 1,10,000$
Loss on issue of Debentures A/c Dr. $\displaystyle 5,000$
To $\displaystyle 8$% Debentures A/c $\displaystyle 1,00,000$
To Securities Premium A/c $\displaystyle 10,000$
To Premium on redemption of Debentures A/c $\displaystyle 5,000$
(Debentures issued at $\displaystyle 10$% premium, redeemable at $\displaystyle 5$%
premium on redemption)
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.